Ah, the teenage years, what a time to be alive. You have no care in the world, you think you’re untouchable, and anything you do doesn’t seem to have any consequences. Being a teenager was a fun time, but, looking back on it, there were a few things I wish I’d done differently.
It’s fair to say there are certain decisions I made as a teenager that affected my life going forward – particularly on the financial side of things. More to the point, it seems most teenagers continue to make the same mistakes I made. So, if you are a teenager, listen up, because you’re about to read some things that will shock you. If you have a teenage child, then you need to read this article and tell them about it too. Below, you will find the main ways teenagers are setting themselves up for a lifetime of debt.
Splashing The Cash
It goes without saying that the majority of teenagers never save money. Most of the time, they spend whatever money they get, as soon as they get it. This is either spent on clothes, nights out, holidays, or other material things. When this happens, you have no money to save for your future. This is something a teenager will regret if they go to college. Spend too much cash, and you’ll have none saved for college, meaning you need to get a big student loan. It says on studentloanhero.com that there’s currently over a trillion dollars worth of student debt out there right now. It’s a serious issue, and you could be one of those unlucky people that owe a lot in the future. Try and save more, particularly if you have college in your sights.
Reckless Use Of Credit Cards
Some teenagers, particularly those that are going to college, will apply for their first credit card and think they have a magic money card. They use it to pay for everything, and their eyes light up when they see a minimum charge every month. They pay that minimum charge, which adds the rest of their bill onto next month, plus interest. Now, as it mentions on studentcredit.cards, a credit card is a great way for a young person to build a credit score. However, if you recklessly use it like this, you will end up in serious debt.
Not Getting A Job
Why get a job? They’re boring and restrict how often you can go out with your mates, right? Wrong, they give you a source of income that can be very important for a teenager. Again, like I mentioned earlier, you can use this money and save it for college. Without a job, you make it harder to save, which makes it harder to go to college without getting into debt. Furthermore, if you don’t have a job, you look for other ways to get money. This could mean getting a short-term loan, which will put you in loads of debt. Get a job, even if it’s part-time.
You see, the things you do as a teenager have an impact on the rest of your life. Don’t make the same mistakes most teenagers make, and assure yourself of a comfortable future.